Phl debt hits P17.7T, mostly domestic

The Philippine government’s total liabilities reached ₱17.71 trillion at the end of 2025, up 10.3 percent from ₱16.05 trillion at the close of 2024, as authorities emphasized that the debt portfolio remains resilient with the bulk sourced domestically.

Data from the Bureau of the Treasury (BTr) showed domestic creditors accounted for 68.4 percent of the total, or ₱12.12 trillion, while foreign-currency denominated obligations stood at ₱5.59 trillion.

“The increase is due to the government’s strategic net issuance of debt instruments to fund development programs, as well as the valuation effects of peso depreciation against the US dollar and third currencies,” the BTr said in a statement.

“By prioritizing peso-denominated financing, which is predominantly held domestically, the government reduces exposure to exchange rate volatility. It also keeps interest payments within the domestic economy and provides Filipinos with a stable and secure investment option,” the agency added.

Domestic debt rose ₱1.19 trillion year-on-year in 2025, while foreign debt increased by ₱47 billion from ₱5.12 trillion in 2024. The government sources funds through treasury bonds (T-bonds), treasury bills (T-bills), retail treasury bonds (RTBs), and foreign currency-denominated loans.

The BTr highlighted that net domestic financing totaled ₱1.18 trillion last year, reflecting strong investor confidence amid changing market conditions.

“External financing remained prudent and largely concessional. This results in a net external financing level of ₱317.02 billion from global bond issuances and program and project loans to support infrastructure, social reform, and agriculture and industry sectors,” it said.

Meanwhile, guaranteed obligations declined 0.6 percent, or ₱2.09 billion, to ₱344.57 billion, representing about 1.2 percent of GDP, signaling minimal contingent debt risks.